MEANING AND OBJECTIVES OF FINANCIAL REPORTING COUNCIL OF NIGERIA

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The financial reporting council (FRC) of Nigeria is a federal government parastatal overseen by the federal ministry of industry, trade, and investment.

The FRC is in charge of developing and publishing accounting and financial reporting standards that must be followed when preparing financial statements for Nigerian public entities.

It was established on the 20th of July, 2011 When Nigeria's then-president, Goodluck Jonathan signed the Financial Reporting Council bill into law.

Composition Of The Board Of Financial Reporting Council Of Nigeria

According to the FRCN Act of 2011, the board of the Nigerian Financial Reporting Council will consist of 23 members:

1. A chairman who is an experienced professional in the accounting sphere.

2. Two representatives each from the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN)

3. One representative from each of the following:

  • Office of the Accountant General of the federation
  • Officer of the Auditor-General of the federation
  • Central Bank of Nigeria
  • Chartered Institute of Stockbrokers
  • Chartered Institute of Taxation of Nigeria
  • Corporate Affairs Commission
  • Federal Inland Revenue Service
  • Federal Ministry of Finance
  • Nigerian Accounting Association (a body of Accounting Lecturers)
  • Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture
  • Nigerian Deposit Insurance Corporation
  • Nigerian Institute of Estate Surveyors and Valuers
  • Securities and Exchange Commission
  • Nigeria Stock Exchange
  • National Pension Commission

4. Executive secretary of the Council.

Objectives Of The Financial Reporting Council Of Nigeria.

As defined by the financial reporting council Act, the objectives of the FRC are:

1. To protect investors' and other stakeholders' interests.

2. To give guidance on issues relating to financial reporting and corporate governance to professional, institutional, and regulatory bodies in Nigeria.

3. To ensure accuracy and reliability of financial reports and corporate disclosures, under the various laws and regulations currently in existence in Nigeria.

4. To harmonize activities of relevant professional and regulatory bodies relating to corporate governance and financial reporting.

5. To promote the highest standards among auditors and other professionals engaged in the financial reporting process.

6. To enhance the credibility of financial reporting

7. To improve the quality of accountancy and audit services, actuarial, valuation, and corporate governance standards.

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